CARREFOUR

CA
Real-time Euronext Paris - 05/26 12:13:44 pm
13.085EUR
-0.68%

Carrefour : A long term support level to be taken advantage of

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Jordan Dufee
Analyst

Strategy published on : 05/22/2020 | 02:38

long trade
Live

Entry price : 12.685€
Target : 14€
Stop-loss : 11.9€
Potential : 10.37%

Technically, timing appears good within a medium term time horizon to buy shares in Carrefour. The technical support area at 12.76 EUR effectively limits downside risk and should allow the stock to get back into an upward dynamic.
Investors have an opportunity to buy the stock and target the € 14.

Summary

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 12.76 EUR in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 12.33 support.

● The stock, which is currently worth 2020 to 0.24 times its sales, is clearly overvalued in comparison with peers.

● The company's attractive earnings multiples are brought to light by a P/E ratio at 10.53 for the current year.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● The company has insufficient levels of profitability.

● The underlying tendency is negative on the weekly chart below the resistance at 15.09 EUR

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